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April 7, 2007
Rent stabilized 6 family - what can we do?
My husband and I are looking into this 6 family building in Park Slope. There are 5 rent stabilized apartments and 1 vacant room. We're not sure if we should stay away from this deal. Here are our questions:
1)The current vacant room(1br) is not big enough for us. Can we occupy next door 1br and connect them to make into 1 large unit? If we did so, does that change the building from 6 family to 5? How does that affect the building status?
2)If it's too difficult to connet 2 one-berooms (due to layout and etc.), is it possible for us to occupy a larger unit that's currently occupied? Or are we only limited to move into a currently vacant unit, even if it's too small?
3)If neither of above options work out, we may not live there at all. In that case, we can rent out the vacant unit at market rate, which will be over $2000/m. Again, how does that affect the building status?
Any advice is appreciated. Thank you!!
Comments
I know nothing about this stuff, so check with an expert, but I always thought an owner could take over a rent-stabilized apartment if the owner himself needed to live in it.
Posted by: Anonymous at April 7, 2007 4:57 PM
you can get an apartment(s) for your personal use if you are not organized as a corporation. You can incorporate later after you get your apartment(s). If you combine 2 apartments and become a 5 family house, the remaining apartments remain under rent stabilization until they become vacant or reach the $2000 legal rent threshold and then become vacant unless the tenant is making 175000 a year for two years in a row. For more details see RSANYC.com
Posted by: guest at April 7, 2007 7:40 PM
if tenant is over 62, you can't evict, even for personal use, i believe
I would meet all tenants and get a feel for them before buying. they could be your tenants for the rest of your life!
Posted by: Anonymous at April 8, 2007 6:13 AM
basically the tenants will own the building and you work for them.
Posted by: Anonymous at April 8, 2007 8:03 AM
in order to convert the 2 units into 1 you need to hire an architect have him make plans and get building city permits. Otherwise, be prepared for a tenant or neighbor calling 311 and make a complaint against you for an illegal conversion, work without a permit, etc. In addition, the tenants can use it against you and Park Slope folks have fangs, lol. It can be costly, believe me all I did was tear down plaster leaving the frame in order to replace the plaster with sheetrock and I got dinged.
Posted by: nuyo at April 8, 2007 10:29 PM
even if you do buy this building, which i wouldn't recommend, you won't be able to even begin to displace any of the tenants until their leases expire, and it's a long process.
as for just renting out the currently vacant apartment...are you sure it's destabilized? stabilization goes with the unit, not the tenant. and it will not go away if you lower number of units from 6 to 5, if that's one of your questions.
and as for renovating...well, not only will neighbors/tenants complain if you do this without permits, but your tenants will have to live through this construction, which isn't going to make them happy.
Posted by: Anonymous at April 9, 2007 10:01 AM
Thank everyone for the comments! So, from what I read, it seems like we should forget about de-stabilizing the building somehow. It's pretty much impossible, correct?
Say, if we move into the vacant 1BR, and kindly ask next door 1BR renter to move out, when his/her lease is up. (We seriously will need more space, as we're expecting!) Realistically, how long will it take? Has anyone done this before? I heard that you can offer some cash, but how much? I've been reading anywhere from 15K to 200K. What's appropriate for 500sqft 1BR in Park Slope? If we end up in court, how much are we looking at for legal fee??
Posted by: future buyer at April 9, 2007 1:34 PM
Thank everyone for the comments! So, from what I read, it seems like we should forget about de-stabilizing the building somehow. It's pretty much impossible, correct?
Say, if we move into the vacant 1BR, and kindly ask next door 1BR renter to move out, when his/her lease is up. (We seriously will need more space, as we're expecting!) Realistically, how long will it take? Has anyone done this before? I heard that you can offer some cash, but how much? I've been reading anywhere from 15K to 200K. What's appropriate for 500sqft 1BR in Park Slope? If we end up in court, how much are we looking at for legal fee??
Posted by: future buyer at April 9, 2007 1:37 PM
Thank everyone for the comments! So, from what I read, it seems like we should forget about de-stabilizing the building somehow. It's pretty much impossible, correct?
Say, if we move into the vacant 1BR, and kindly ask next door 1BR renter to move out, when his/her lease is up. (We seriously will need more space, as we're expecting!) Realistically, how long will it take? Has anyone done this before? I heard that you can offer some cash, but how much? I've been reading anywhere from 15K to 200K. What's appropriate for 500sqft 1BR in Park Slope? If we end up in court, how much are we looking at for legal fee??
Posted by: anon at April 9, 2007 1:43 PM
you're making an assumption that by offering an "appropriate" amount as a buy-out, that the tenants would have to accept it. that just isn't so. if they really want to stay, they'll hire a lawyer.
as to how much your lawyer would cost...that's hard to figure. i'd call/contact some landlord tenant attorneys and explain the situation and get estimates, just like hiring a contractor.
Posted by: Anonymous at April 10, 2007 9:41 AM
If the price of the building is below market, now you know why. The is no such thing as a free lunchfor owners and landlords. You are better off looking for another property unless you have to have this property and you have very deep pockets.
Posted by: Anonymous at April 11, 2007 4:56 PM
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